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““If you don’t know where you are going, it does not If you don’t know where you are going, it does not matter how you get there”matter how you get there”

Blog: - finance-chetana.blogspot.com

Email: - dhandhania.atul@gmail.com

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Pondering ThoughtsPondering Thoughts

Over dependence On Conventional Accounting Data

“ ..some day people will realize that balance sheet does not give you the true picture of performance because it doesn't contain anything but figures. The real strengths and weaknesses of an enterprise lie in the plans.”

Audited balance sheet Macro-economic analysis Maximize the value of the organization

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Our Education System & SyllabusOur Education System & Syllabus

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Inadequate Class Room AttentionInadequate Class Room Attention

Financial planning and budgeting Management of assets Short-term financial activities Pension fund management Liability and equity management Spread-sheet software

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Successful ManagementSuccessful Management

Financial management theory Exposure to balance sheets Overpricing and under invoicing of import and export bills through

transfer pricing Foreign exchange risks Bond issues Debt swaps Purchasing power parity Black markets (money laundering)

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One must have basic knowledgeOne must have basic knowledge

Accounting Statistical methods Banking Marketing Economic development and economic analysis (theory) Quantitative techniques Financial institutions (Domestic & International)

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OpportunitiesOpportunities

Debt management Acquisition Analysis Cash management Taxation Project Finance Financial Consultancy

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Advance TopicsAdvance Topics

Types of finance Internal and external financing of modern corporations. Stock exchange practice and regulations Capital gearing and optimal financing Finance of international Trade

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Attributes of a good managerAttributes of a good manager

Planning & organization skills Personnel management skills Communication skills Change orientation Ability to solve problems in their totality High energy levels Ambition for achievement Ability to take suggestion Ability to develop alternative action quickly Knowledge of management methods and tools Ability to make self evaluation

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Attributes of a good managerAttributes of a good manager

Effective time management Capacity to relate current events to management Ability to handle management software tools/packages Flair for sense of humour Solving issues/problems immediately without postponing them Initiative and risk taking ability Tolerance for difference of opinion, delay, ambiguity Knowledge of technology Conflict resolving capacity Team building skills Resource allocation skills Entrepreneurial skills

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Equity ResearchEquity ResearchFundamental Analysis (EIC Approach)Fundamental Analysis (EIC Approach)

1. Macro Economic Factors

– Interest rate

– Exchange rates

– National income

– Inflation

–Monetary policies

– Fiscal policies

– GDP/GNP and growth rate

2. Micro Economic Factors–Demand & supply conditions–Market structure – monopoly

/oligopoly etc– Cost management– Production efficiencies– Pricing strategies

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Industry Analysis

• Tools for Industry Analysis

– Concentration

=> Top firms’ Market share Index

– Industry Life Cycle

– SWOT Analysis

– PEST Analysis

– Porter 5 forces

– BCG Matrix

– GE’s nine-grid Matrix

Company Analysis

• Periodic Regulatory Filings• Annual Reports• M&A• Financial Statements• Ratio Analysis

– Liquidity– Solvency– Activity– Profitability– Capital efficiency

Equity ResearchEquity ResearchFundamental Analysis (EIC Approach)Fundamental Analysis (EIC Approach)